The Human Rights Economy – from concept to practical application

Excellencies,
Distinguished guests,

It is a real privilege to be here today to discuss the concept of a Human Rights Economy, launched by the High Commissioner last year, starting by why it is a priority.

Every day, we are reminded of the multiple crises that surround us - growing debt distress, mind-boggling inequalities, eroding living standards and poverty levels not seen in a generation. Deepening mistrust and dangerous levels of polarization.

The highest number of violent conflicts since the end of WWII. 14 per cent of people in the world in 2023 lived within five kilometres of violent conflict.

A climate emergency and ecosystems that fall apart as we watch.

It is clear that we must do better. Our economies are not delivering for us.

The long-held belief that the tide lifts all boats, has simply proven wrong. Economic growth on its own will not redress existing structural injustices or fulfil people’s rights nor save the planet.

For decades, mainstream of economic thinking has been dominated by approaches that have weakened the capacity and incentive of the State to deliver on its obligations to people.

For too long we have siloed economic policy making from human rights norms and standards.

This is not inevitable. It is a policy choice.

What we need are economies that deliver for people and their rights, and that protect our environment.

It is time for human rights economies.

A human rights economy puts people and the planet at the centre of economic decisions.

It anchors all economic, fiscal, monetary, business and investment decisions in human rights by using human rights obligations that Governments already have agreed to.

It also recognizes economic, social and cultural rights and the right to a clean, healthy and sustainable environment for what they are – part of the rule of law, not mere aspirations.

So, what does this look like in practice?

It means using human rights obligations to guide budget decisions and to invest sufficiently in public education, health, social protection and other rights; to take meaningful action to reduce inequalities; to refrain from austerity measures, social cuts and retrogressions. 

Or creating mechanisms for participative, inclusive, transparent and accountable budget processes that allow the public and civil society to access information and “follow the money”.

This is a real gap. The Open Budget Survey 2021 found that only 31 per cent of the 120 countries surveyed had the necessary data to understand how their budgets addressed poverty.

Another example is using human rights to design progressive tax systems for greater equality and to generate the resources needed to realize human rights for all.

A human rights economy addresses not only poverty and deprivation but also extreme concentrations of wealth and power along gender, ethnic, racial, geographic and other divides.

It intentionally uses rights-based and equality-focused policies and methods and systematically relies on impact assessments of actual or potential discrimination of policy making.

It requires a shift in how we measure economic performance that goes beyond GDP.

There are of course also global dimensions to the human rights economy. There is an urgent need to reform the international financial architecture, but also to change approaches.

Governments have human rights obligations that need to be factored into negotiations with international financial institutions.

There are 3.3. billion people living in countries that spend more on debt servicing than health and education. Debt servicing and conditionalities should not trump human rights obligations.

Distinguished guests,

There is momentum for change.

A growing civil society movement is pushing for greener and more inclusive and equitable economies.

Several prominent economists stand with us.

In April this year, the African Sustainable Development Forum called for alignment of economic policy making with human rights as part of efforts to resume progress on the SDGs and leave no one behind. 

There is a strong global push for reforming the international financial architecture.

We need your expertise, ideas and support. I look forward to our discussions today.